PxPixel
Q1 dip for Jakks - ToyNews

Q1 dip for Jakks

Firm still confident of achieving four per cent growth despite set back.
Author:
Publish date:
5_Pocoyo.jpg

Jakks first quarter net sales to March 31st increased 5.5 per cent to $130.9 million, compared to $124.1 million recorded in the comparable period last year.

However, increased litigation, product testing and restructuring costs saw its net income drop from $3.2 million to just $0.9 million.

Jack Friedman, chairman and CEO, said: "Sell-through continued strong in the first quarter, with sales driven by our Hannah Montana toys, action figures and Plug It In & Play electronic products.

"With increased costs related to litigation, product testing, and marketing, promotion and advertising, as well as some closeout sales that affected gross margins and the bottom-line versus last year's first quarter, we are still on track to achieve our previous guidance of at least 4 per cent growth over 2007, leaving us poised for another record year for Jakks Pacific.

“During the first quarter, we finalised the integration of our Play Along division and expect to benefit beginning in the second quarter from the operating efficiencies as a result."

Stephen Berman, president and chief operating officer, added: “Cash flow from operations in the quarter was $15.4 million, and our financial position remains very strong. As of March 31, 2008, our working capital was $359.2 million, including cash and equivalents of $238.3 million, and we continue to evaluate potential acquisition opportunities and expect to continue to grow our business by actively pursuing complementary acquisitions and executing on internal growth initiatives, in the near future.”

Friedman concluded that the firm is confident it will achieve its 2008 forecast of at least $891.4 million in net sales and $93.6 million in net income.

Related

5_Pocoyo.jpg

Disney dips in Q1

Disney's president says the firm will be reducing costs after first quarter results saw group turnover and profit both fall.

Featured Jobs

Copyrights Group

Marketing Manager

The Copyrights Group is one of the licensing arms within The Vivendi Group. Acquired by Vivendi in 2016 Copyrights manages the licensing for a portfolio of properties to include Paddington Bear. Some of the other companies within the Vivendi Group include Universal Music Group, and their licensing arm Bravado, Gameloft and Studiocanal to name a few.